Shin-Etsu Polymer Overview
Shin-Etsu Polymer is a Tokyo-based resin and silicone rubber processor controlled by Shin-Etsu Chemical. It turns PVC, silicone and engineering plastics into high-specification components for semiconductors, cars, office equipment, medical devices and food packaging. Its strategic core is the plastic containers that protect silicon wafers: shipping boxes (FOSB) used between wafer makers and chip plants, and front-opening unified pods (FOUP) used inside fabs. Together with Entegris and Miraial, it belongs to the small group that dominates this qualification-heavy niche. Around that core sit steadier businesses, including automotive input devices, printer rollers, catheter parts, carrier tape, wrapping film and functional compounds. The company has no borrowings, held JPY 55.1 billion of cash and deposits at 30 September 2026, and is working towards JPY 150 billion of sales by FY2030 with a payout ratio of 50% or more.
Company description. The FY2026 Securities Report defines the group as a resin processor that combines materials and compounding, design, processing and evaluation technologies across silicone, plastics and conductive materials. The corporate philosophy is to observe the law, conduct fair business, create value through technology and products, and contribute to society and industry. Management aims to grow in any economic environment by strengthening existing businesses and creating new ones.
Independent characterisation. Shin-Etsu Polymer is less a diversified chemical company than a semiconductor consumables franchise attached to a portfolio of niche engineered parts. Precision Molding Products was 51.9% of FY2026 sales and 72.8% of operating income. Wafer containers are the main reason for that weight, although the company does not report them separately.
Business model. The company makes and sells physical products. Revenue is recognised at delivery, or at shipment for ordinary domestic sales. The only over-time revenue comes from construction contracts at Shin-Etsu Finetech. There is no subscription or licensing line of any significance, though the company licenses Digipak packaging in Japan from Atlas Holdings. Volume rebates are netted against sales, and paid-supply processing is recorded net.
Value chain position. The company buys resins and silicone, some of it from its parent: JPY 3,698 million in FY2026, about 4.6% of cost of sales. It adds value through formulation, precision moulding, cleanroom manufacture, and evaluation and analysis. Customers are wafer makers, device makers, automotive suppliers, printer makers, medical device makers, supermarkets, restaurants and construction firms.
Customer concentration. No customer reached 10% of FY2026 sales. Sister company Shin-Etsu Handotai bought JPY 3,327 million of semiconductor containers, 2.9% of sales. Management links continued listing to this independence: because the company is not simply a captive supplier, it says it can sell containers to all wafer makers, not only its parent (results briefing, 15 May 2026).
End markets.
Semiconductors and electronic parts: Principal products: FOSB, FOUP, carrier tape, connectors, wafer frames; Management classification: Growth
Automotive: Principal products: Input devices, wipers, packings, EV fire-prevention cushions; Management classification: Base and growth
Office equipment: Principal products: Toner fixing and developing rollers; Management classification: Base
Medical and bioprocess: Principal products: Catheter parts, silicone tubing, single-use assemblies; Management classification: Growth
Packaging and food service: Principal products: PVC wrap, colour wrap; Management classification: Base
Factory automation and robotics: Principal products: Functional compounds for cable coating; Management classification: Base
Construction and infrastructure: Principal products: Corrugated sheets, sealants, repair materials; Management classification: Base
Advanced materials: Principal products: Conductive polymers, heat-resistant thin films; Management classification: Growth
Strategy
The medium-term plan "Shin-Etsu Polymer Global & Growth 2029" was published in November 2025. It replaced "SEP G&G 2027", because semiconductor and automotive changes delayed earnings growth. Its stated themes are:
Business strategy: "acquire new applications and invest actively in growth areas", "expand sales of proprietary products and raise productivity in base areas", and "increase the overseas sales ratio".
Financial and non-financial strategy: "continue concentrated investment in growth areas", "strengthen shareholder returns and maintain a stable high dividend", and "strengthen ESG initiatives".
Net sales: Value: JPY 150 billion
Ordinary profit: Value: JPY 20 billion, with operating income assumed at a similar level
ROE: Value: About 10%
Payout ratio: Value: 50% or more
FX assumption: Value: USD/JPY 140; EUR/JPY 165
Investment plan, FY2026-FY2030: Value: JPY billion
Base-area equipment renewal: Value: 16
Growth: EV, semiconductor, functional materials: Value: 37
Flexible investment and M&A, maximum: Value: 15
Total: Value: 68
Initiative, last 24 months: Value: Date; Target or status
Kitchenista absorption: Value: Apr 2025; Integrated wrap management; defend top position in commercial small-roll wrap
Tokyo Plant new building: Value: By Nov 2025; 300 mm shipping container output began
Back-end process containers: Value: Ongoing; Commercialise new products for semiconductor back-end
Next-generation automotive parts: Value: Ongoing; New EV products after fire-prevention cushions
Heat-resistant thin film: Value: Ongoing; Mass-production verification for automotive electronics and power semiconductors
Colour wrap conversion: Value: Ongoing; Replace clear wrap with proprietary product
Price correction: Value: 2026; Wrap partly done; containers and others to follow
PDI acquisition: Value: Sep 2026; Add mould and jig capability; strengthen overseas production
Renewable power: Value: FY2026 onward; 20% at domestic plants in FY2026 year; plant-level ratios from the following year
Risk Management Committee: Value: Mar 2026; Reports to board
Human rights due diligence: Value: Since FY2025 year; Group-wide risk survey
Current guidance. On 26 October 2026, the company forecast FY2027 sales of JPY 127,000 million, operating income of JPY 18,200 million, ordinary profit of JPY 18,000 million, net income of JPY 11,800 million, EPS of JPY 146.82 and a dividend of JPY 72. No formal cost-reduction programme with a disclosed savings target is in place.
Products & Services
Products are sold business to business at negotiated prices, except for wrap sold through commercial channels, and the company publishes no price lists. Launch years are given only where the company states them. The company's catalogue lists no reticle pods; its handling products are wafer containers and carrier materials.
Precision Molding Products: semiconductor and electronic parts
Precision Molding Products: office equipment, medical and industrial
Electronic Devices
Housing & Living Materials
Product Portfolio
| Product | Description and capabilities | Target customer |
|---|---|---|
FOUP300EX | In-process container for up to 25 wafers of 300 mm; automation compatible; tight seal; single-piece moulding; ESD material in key parts | Device makers and foundries |
MW300GT | Automation-compatible, SEMI-compliant 300 mm shipping case for 25 wafers; opens by hand or load port; replaceable filter and retainer parts | Wafer makers and device makers |
MW200N | Wafer case in the 200 mm range | Wafer and device makers |
MW150M, MW150N | Wafer cases in the 150 mm range | Wafer and device makers |
MW125N | Wafer case in the 125 mm range | Wafer and device makers |
PANEL FOUP | Container listed for panel handling | Panel-level processes |
Shin-Etsu Carrier Tape | Embossed carrier tape for semiconductors and electronic parts; strong large-part demand from AI servers | Component and chip makers |
Shin-Etsu Top Cover Tape | Heat-sealed film that closes embossed tape | Component and chip makers |
Shin-Etsu Light Frame | Wafer dicing frame for back-end processes | Semiconductor back-end plants |
| Product | Description and capabilities | Target customer |
|---|---|---|
OA rollers | Silicone toner fixing and developing rollers using composite, foaming and conductive technology | Printer and copier makers |
Medical devices | Silicone parts for catheter, anaesthesia, surgical and dialysis uses | Medical device makers |
Shin-Etsu Silicosen, BioSilico | Open-cell silicone culture plugs with heat and chemical resistance | Laboratories and bioprocess users |
Single-use silicone tube | Tube for biopharmaceutical and regenerative medicine manufacture, supplied from Japan | Biopharma manufacturers |
Single-use tube, High Clean | Foreign-matter-reduced version | Cell therapy and biopharma makers |
Single-use tube assembly | Customised assemblies built in Japan | Biopharma manufacturers |
One-piece moulded assembly | Moulded connections with high pressure resistance and leak protection | Biopharma manufacturers |
Shin-Etsu Silico Tube | Heat, cold and weather-resistant transparent tube | Industrial users |
Silico Sponge Sheet | Heat-resistant closed-cell sheet; RA and CT grades | Industrial users |
Silico Sheet | BA economy and KA conductive grades | Industrial users |
Cross-section-changing tube | Seamless tube with continuously varied section | Industrial users |
Hisui Barrier | Fire-protective silicone gasket, solid or sponge | Construction and facilities |
| Product | Description and capabilities | Target customer |
|---|---|---|
Touch switches | Capacitive printed PET film switches | Automotive, appliances |
Touch pads | Capacitive printed electrode film | Notebook PC and vehicle makers |
Rubber contacts | Waterproof, dustproof, durable silicone keypads | Automotive, industrial |
Short-stroke keys | Rubber contacts for short travel | Electronic equipment makers |
Metal dome keys | Silicone combined with metal domes | Electronic equipment makers |
In-mould parts | Polycarbonate and silicone moulded as one | Automotive, equipment |
Pressure-sensing devices | Detect pressure through capacitance change | Automotive, equipment |
VCF, N-VCF, W-VCF | Silicone view-angle and light-path control films, in standard, narrow and wide types | Displays and sensors |
Inter-Connector MT, MAF | Gold-plated wire or metal fibre test connectors | Semiconductor and electronics test |
Inter-Connector GB series | Gold-plated wire connectors in Matrix, E and U forms | Electronics assemblers |
Inter-Connector MS, AF, S, SS, SG, SP, SEC | Silver, carbon or conductive rubber zebra and sheet connectors | LCD and board connection |
DM type | Silicone cushion spacer | Connector users |
JC-DP, JS-KN | Heat-seal connectors with carbon or silver lines | Display makers |
Vehicle silicone parts | Wipers, packings, EV battery fire-prevention cushions | Automotive OEMs and suppliers |
| Product | Description and capabilities | Target customer |
|---|---|---|
Polyma Wrap, commercial large roll | PVC stretch film sold for around 50 years | Supermarkets, fresh food retail |
Polyma Wrap RV | PVC roll with 10% biomass raw material | Supermarkets |
Kitchenista Wrap | Professional wrap and kitchen products | Restaurants, hotels |
Polyma Wrap, small roll | Boxed food-service wrap | Restaurants, hotels |
Colour wrap | Proprietary coloured wrap helps kitchens identify dishes and detect stray wrap pieces | Food service |
Runner Clip | Biodegradable strawberry-growing fastener | Agriculture |
Digipak | CD and DVD packaging, licensed in Japan | Media packaging |
Polycarbonate Tough, heat-cut and Eco types | JIS-certified corrugated sheets | Construction |
PVC corrugated sheets, including barn type | JIS-certified sheets | Construction, livestock |
EXELAST SE, SX, EC | Sliding PVC, olefin and urethane compounds | Automotive, FA and robot cable makers |
Seplegyda | Polythiophene conductive polymer; surface resistivity from 50 ohm/sq to anti-static range | Electronics, capacitors |
Shin-Etsu Sepla Film | Unstretched PEEK film from thin to thick gauge | Electronics, power semiconductors |
Financial Narrative
Sources are Securities Reports for FY2024 to FY2026, company briefing materials, and S&P Global data for ratios marked below.
Income statement
Revenue compounded at 5.6% a year from FY2022 to FY2026 and at 8.4% from FY2021's JPY 76,904 million. Operating income compounded at 9.6% and net income at 11.9% over the four years.
The trend has three phases. FY2023 combined a semiconductor upcycle with price revisions and yen weakness: the average dollar rate used for overseas subsidiaries rose from JPY 109.8 to JPY 131.4. FY2024 saw semiconductor inventory adjustment cut Precision Molding income by 26.9%. FY2025 and FY2026 brought recovery, although FY2026 Precision Molding income slipped 0.2% despite 6.7% more sales. Depreciation from new capacity and the printer roller cycle absorbed that growth.
Gross margin has not improved over the period. The rise in operating margin came from SG&A falling from 20.9% to 17.8% of sales. FY2026 cost of sales also included JPY 408 million of inventory write-downs, up from JPY 48 million. Exchange losses reached JPY 571 million, and a JPY 396 million loss arose on terminating a North American production outsourcing contract.
The first half of FY2027 marks an inflection. Second-quarter sales were JPY 33,740 million, up 19.5%, and operating income was JPY 5,206 million, up 58.2%, for a 15.4% margin. Depreciation fell by JPY 462 million, supplying about a fifth of the JPY 2,244 million rise in operating income. Net income grew far more slowly because exchange losses rose to JPY 464 million and the tax rate rose from 24.4% to 32.9%.
Balance sheet
The balance sheet is strongly over-capitalised. The only interest-bearing obligations are leases of JPY 748 million at FY2026 and JPY 756 million at FY2025. Goodwill from the Kitchenista purchase has been fully removed: the balance fell by JPY 1,375 million in FY2023, a year with JPY 1,616 million of extraordinary losses, and the last JPY 79 million was amortised in FY2026.
At 30 September 2026, total assets were JPY 162,808 million, cash and deposits JPY 55,107 million, net assets JPY 135,470 million, and the equity ratio 82.9%. Cash and deposits equalled 41% of net assets and 27% of market capitalisation.
Cash flow
Capital spending peaked at JPY 15.5 billion in FY2024 as Itoigawa and Tokyo capacity was built, then fell below depreciation in FY2026. That swing doubled free cash flow. Operating cash flow fell in FY2026 because trade payables dropped by JPY 4,617 million and tax payments rose to JPY 4,149 million.
Management said in May 2026 that FY2027 capital spending would exceed FY2026, because the building shell is complete and equipment will now be added ahead of demand. First-half tangible purchases were JPY 1,612 million, while construction in progress rose by JPY 1,123 million. Operating cash flow was JPY 8,664 million in the half, despite receivables growing by JPY 3,714 million.
Ratios
High returns on operating capital are masked by surplus cash. ROIC of about 13% is well above ROE of 7.9%, which explains why the roughly 10% ROE target depends on both earnings growth and capital deployment. The cash conversion cycle has lengthened by 39.5 days since FY2022: inventory days rose from 85.6 to 97.2 and payable days fell from 90.3 to 52.7, while receivable days improved from 97.7 to 88.0.
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View Subscription PlansFinancial Detail
Segment sales (JPY Mn)
| Segment sales (JPY Mn) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Electronic Devices | 21,996 | 24,684 | 25,506 | 24,848 | 25,726 |
Precision Molding Products | 42,147 | 50,021 | 47,602 | 56,024 | 59,773 |
Housing & Living Materials | 21,406 | 26,236 | 24,184 | 22,080 | 21,513 |
Others | 7,090 | 7,336 | 7,085 | 7,628 | 8,103 |
Total | 92,640 | 108,278 | 104,379 | 110,582 | 115,116 |
Segment operating income (JPY Mn)
| Segment operating income (JPY Mn) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Electronic Devices | 1,186 | 1,694 | 2,075 | 1,190 | 1,713 |
Precision Molding Products | 7,658 | 9,867 | 7,211 | 10,244 | 10,218 |
Housing & Living Materials | 485 | 909 | 1,374 | 1,363 | 1,631 |
Others | 400 | 278 | 389 | 473 | 476 |
Total | 9,732 | 12,749 | 11,050 | 13,271 | 14,040 |
Segment operating margin (%)
| Segment operating margin (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Electronic Devices | 5.4 | 6.9 | 8.1 | 4.8 | 6.7 |
Precision Molding Products | 18.2 | 19.7 | 15.1 | 18.3 | 17.1 |
Housing & Living Materials | 2.3 | 3.5 | 5.7 | 6.2 | 7.6 |
Others | 5.6 | 3.8 | 5.5 | 6.2 | 5.9 |
Segment sales growth (%)
| Segment sales growth (%) | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Electronic Devices | 12.2 | 3.3 | -2.6 | 3.5 |
Precision Molding Products | 18.7 | -4.8 | 17.7 | 6.7 |
Housing & Living Materials | 22.6 | -7.8 | -8.7 | -2.6 |
Others | 3.5 | -3.4 | 7.7 | 6.2 |
Share of group sales (%)
| Share of group sales (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Electronic Devices | 23.7 | 22.8 | 24.4 | 22.5 | 22.3 |
Precision Molding Products | 45.5 | 46.2 | 45.6 | 50.7 | 51.9 |
Housing & Living Materials | 23.1 | 24.2 | 23.2 | 20.0 | 18.7 |
Others | 7.7 | 6.8 | 6.8 | 6.9 | 7.0 |
Revenue by Segment
| Segment, first half (JPY Mn) | H1 FY2026 sales | H1 FY2027 sales | H1 FY2026 operating income | H1 FY2027 operating income | H1 FY2027 margin (%) |
|---|---|---|---|---|---|
Electronic Devices | 12,679 | 13,186 | 646 | 676 | 5.1 |
Precision Molding Products | 29,185 | 34,028 | 5,516 | 6,727 | 19.8 |
Housing & Living Materials | 10,874 | 12,077 | 781 | 1,632 | 13.5 |
Others | 3,476 | 5,032 | 166 | 317 | 6.3 |
Total | 56,215 | 64,325 | 7,110 | 9,354 | 14.5 |
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View Subscription PlansFY2026 Segment Data Details
| FY2026 segment data (JPY Mn) | Depreciation | Capital investment | R&D | Employees |
|---|---|---|---|---|
Electronic Devices | 1,199 | 768 | 1,205 | 2,003 |
Precision Molding Products | 4,198 | 1,967 | 1,680 | 1,685 |
Housing & Living Materials | 846 | 632 | 754 | 381 |
Others | 13 | 6 | 0 | 54 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (JPY Mn) | 92,640 | 108,278 | 104,379 | 110,582 | 115,116 |
Gross profit (JPY Mn) | 29,140 | 33,731 | 31,155 | 33,944 | 34,569 |
Operating income (JPY Mn) | 9,732 | 12,749 | 11,050 | 13,271 | 14,040 |
EBITDA (JPY Mn) | 13,522 | 16,890 | 15,713 | 19,060 | 20,376 |
Ordinary profit (JPY Mn) | 10,129 | 12,986 | 11,530 | 13,218 | 14,008 |
Pre-tax income (JPY Mn) | 9,413 | 11,373 | 11,778 | 13,207 | 13,630 |
Net income (JPY Mn) | 6,308 | 8,529 | 8,674 | 9,430 | 9,899 |
EPS, basic (JPY) | 78.15 | 105.68 | 107.31 | 116.99 | 123.15 |
EPS, diluted (JPY) | 77.89 | 105.11 | 106.62 | 116.37 | 122.28 |
Dividend per share (JPY) | 26 | 38 | 46 | 52 | 62 |
Gross margin (%) | 31.5 | 31.2 | 29.8 | 30.7 | 30.0 |
Operating margin (%) | 10.5 | 11.8 | 10.6 | 12.0 | 12.2 |
EBITDA margin (%) | 14.6 | 15.6 | 15.1 | 17.2 | 17.7 |
Net margin (%) | 6.8 | 7.9 | 8.3 | 8.5 | 8.6 |
Revenue growth (%) | 20.5 | 16.9 | -3.6 | 5.9 | 4.1 |
Income Statement
| H1 results (JPY Mn) | H1 FY2026 | H1 FY2027 | Change (%) |
|---|---|---|---|
Net sales | 56,215 | 64,325 | 14.4 |
Gross profit | 17,283 | 20,309 | 17.5 |
Operating income | 7,110 | 9,354 | 31.6 |
Ordinary profit | 7,247 | 9,132 | 26.0 |
Net income | 5,483 | 6,095 | 11.2 |
Depreciation | 3,112 | 2,650 | -14.8 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (JPY Mn) | 122,577 | 135,364 | 140,778 | 152,988 | 153,003 |
Cash and deposits (JPY Mn) | 48,749 | 46,900 | 42,453 | 44,901 | 50,073 |
Short-term borrowings (JPY Mn) | 0 | 0 | 0 | 0 | 0 |
Long-term borrowings (JPY Mn) | 0 | 0 | 0 | 0 | 0 |
Net debt, borrowings less cash and deposits (JPY Mn) | -48,749 | -46,900 | -42,453 | -44,901 | -50,073 |
Net assets (JPY Mn) | 94,337 | 105,128 | 112,967 | 123,154 | 129,553 |
Goodwill (JPY Mn) | 1,574 | 199 | 144 | 81 | 0 |
Goodwill and intangibles (JPY Mn) | 2,301 | 872 | 986 | 978 | 760 |
Working capital (JPY Mn) | 65,238 | 70,583 | 67,842 | 72,848 | 81,996 |
Equity ratio (%) | 76.7 | 77.4 | 80.0 | 80.2 | 84.4 |
Book value per share (JPY) | 1,166.23 | 1,294.09 | 1,394.32 | 1,525.86 | 1,606.37 |
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View Subscription PlansCash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (JPY Mn) | 9,759 | 9,124 | 11,973 | 16,013 | 14,450 |
Purchase of fixed assets, tangible (JPY Mn) | 4,163 | 10,401 | 14,573 | 10,679 | 4,075 |
Capital investment, accrual (JPY Mn) | 6,107 | 10,110 | 15,481 | 9,949 | 3,375 |
Depreciation (JPY Mn) | 3,543 | 3,935 | 4,593 | 5,714 | 6,257 |
Free cash flow, operating less tangible purchases (JPY Mn) | 5,596 | -1,277 | -2,600 | 5,334 | 10,375 |
Free cash flow, company definition (JPY Mn) | 95 | -2,076 | -341 | 5,034 | 9,701 |
Dividends paid (JPY Mn) | 1,860 | 2,577 | 3,398 | 3,951 | 4,584 |
Share buybacks (JPY Mn) | 617 | 0 | 827 | 810 | 945 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 7.0 | 8.6 | 8.0 | 8.0 | 7.9 |
ROA, ordinary profit basis (%) | 8.8 | 10.1 | 8.4 | 9.0 | 9.2 |
ROIC, S&P basis (%) | 15.41 | 18.42 | 12.65 | 12.74 | 12.93 |
Current ratio (x) | 3.54 | 3.57 | 3.73 | 3.74 | 5.11 |
Debt to equity (x) | 0 | 0 | 0 | 0 | 0 |
Net debt to EBITDA (x) | -3.60 | -2.78 | -2.70 | -2.36 | -2.46 |
Interest coverage (x) | 389 | 375 | 335 | 379 | 351 |
Asset turnover (x) | 0.80 | 0.84 | 0.76 | 0.75 | 0.75 |
Cash conversion cycle, year-end balances (days) | 93.1 | 101.9 | 110.4 | 119.4 | 132.6 |
Geographic revenue (JPY Mn)
| Geographic revenue (JPY Mn) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Japan | 46,647 | 51,654 | 50,840 | 49,648 | 51,508 |
China | 16,401 | 19,389 | 20,268 | 25,038 | 23,099 |
Others | 29,591 | 37,234 | 33,270 | 35,895 | 40,507 |
Overseas total | 45,992 | 56,624 | 53,538 | 60,933 | 63,607 |
Overseas ratio (%) | 49.6 | 52.3 | 51.3 | 55.1 | 55.3 |
Geographic growth (%)
| Geographic growth (%) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan | -1.6 | -2.3 | 3.7 |
China | 4.5 | 23.5 | -7.7 |
Others | -10.6 | 7.9 | 12.8 |
Revenue by Region
| Segment by geography (JPY Mn) | FY2025 Japan | FY2025 overseas | FY2026 Japan | FY2026 overseas | FY2026 overseas share (%) |
|---|---|---|---|---|---|
Electronic Devices | 7,205 | 17,642 | 7,607 | 18,118 | 70.4 |
Precision Molding Products | 16,864 | 39,160 | 18,415 | 41,357 | 69.2 |
Housing & Living Materials | 18,381 | 3,699 | 17,798 | 3,715 | 17.3 |
Others | 7,197 | 431 | 7,686 | 416 | 5.1 |
Revenue by Region (FY2025–FY2026)
| Property, plant and equipment (JPY Mn) | FY2025 | FY2026 |
|---|---|---|
Japan | 36,943 | 34,740 |
China | 2,304 | 2,113 |
Malaysia | 2,906 | 3,326 |
Others | 7,639 | 7,279 |
Total shareholder return to Mar 2026 (%)
| Total shareholder return to Mar 2026 (%) | 1 year | 3 years | 5 years |
|---|---|---|---|
Shin-Etsu Polymer | 28.9 | 37.8 | 116.1 |
TOPIX including dividends | 34.6 | 87.4 | 102.2 |
Valuation Multiples (x) and Returns & Leverage Ratios (%)
| Year-end valuation (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
P/E (x) | 14.5 | 14.1 | 14.3 | 12.8 | 15.6 |
P/B (x) | 0.97 | 1.15 | 1.10 | 0.98 | 1.19 |
EV/EBITDA (x) | 3.25 | 4.23 | 5.10 | 4.17 | 5.37 |
EV/Sales (x) | 0.48 | 0.66 | 0.77 | 0.72 | 0.95 |
Dividend yield (%) | 2.30 | 2.55 | 3.00 | 3.47 | 3.24 |
Peer Comparison
| Company (%) | Date | Trailing P/E (x) | P/B (x) | EV/Sales (x) | EV/EBITDA (x) |
|---|---|---|---|---|---|
Shin-Etsu Polymer | 2 Nov 2026 | 19.2 | 1.49 | 1.19 | 6.6 |
Entegris | 26 Oct 2026 | 70.1 | 5.15 | 7.41 | 26.9 |
Gudeng Precision | 24 Sep 2026 | 36.8 | 3.54 | 7.03 | 27.6 |
Miraial | 11 Sep 2026 | 21.9 | 0.72 | 0.96 | 6.0 |
Achilles | 19 Oct 2026 | 9.0 | 0.59 | 0.39 | 5.0 |
Dividend history (JPY)
| Dividend history (JPY) | FY2023 | FY2024 | FY2025 | FY2026 | FY2027 forecast |
|---|---|---|---|---|---|
Interim | 18 | 22 | 25 | 30 | 36 |
Year-end | 20 | 24 | 27 | 32 | 36 |
Total | 38 | 46 | 52 | 62 | 72 |
Consolidated payout (%) | 36.0 | 42.9 | 44.4 | 50.3 | 49.0 |
Analyst Conclusions
Management guidance. FY2027 sales are forecast to grow 10.3%, operating income 29.6% and net income 19.2%. The forecast implies second-half sales of JPY 62,675 million and operating income of JPY 8,846 million, both below the first half, with a 14.1% margin. Against the prior second half, that still means operating income up 27.6%. The FY2030 sales target needs 5.7% annual growth from the FY2027 forecast, and the JPY 20 billion profit target needs only 3.6%.
Bull case.
-
The cycle is stronger and longer than guidance implies. Q2 Precision Molding margin reached 20.8%, and SEMI projects 7% annual 300 mm capacity growth to 2029.
-
Mix continues improving. Wrap, compounds, MLCC tape and medical parts all raise group margin, with Housing & Living Materials at 13.5% in H1.
-
Capital deployment is an unused lever. JPY 55.1 billion of cash could fund acquisitions or larger returns, lifting ROE beyond the implied FY2027 level of about 8.9%.
Bear case.
-
The cycle turns. FY2024 showed that a semiconductor inventory correction can cut segment income by more than a quarter, and shares have risen sharply since the upgrade.
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Price competition increases. Gudeng's advanced FOUP push and Chinese localisation threaten a segment generating more than 70% of profit.
-
Input costs catch up. Silicone supply was assured only through H1 in May, and second-half guidance already implies lower margin.
Key catalysts (next 12 months).
6 Nov 2026: Item: Analyst briefing; Why it matters: Container capacity, capital spending and pricing detail
10 Nov 2026: Item: Half-Year Report; Why it matters: Full notes on H1
26 Nov 2026: Item: JPY 36 interim dividend payment; Why it matters: Payout delivery
31 Dec 2026: Item: PDI completion; buyback end; Why it matters: First plan deal
Late Jan 2027: Item: Q3 results; Why it matters: Test of second-half caution
Late Apr 2027: Item: FY2027 results and FY2028 outlook; Why it matters: Guidance practice; the company withheld forecasts in the last two Aprils
Jun 2027: Item: AGM; Why it matters: Board succession
Ongoing: Item: SEMI wafer shipments, memory capital spending, resin prices; Why it matters: Demand and margin
Analyst verdict. Shin-Etsu Polymer has moved from a cash-rich processor valued at less than book to a recognised beneficiary of semiconductor capacity. Its share price, at about 1.5 times book and 17 times forward earnings, now reflects recovery but remains well below the multiples attached to Entegris and Gudeng. That discount has logic: the company's growth has been cyclical, its gross margin has not risen in five years, and ROE has stayed near 8% despite strong operating returns.
The evidence from the first half of FY2027 nevertheless supports a more constructive reading of the business than the historical numbers alone suggest. Precision Molding delivered a 19.8% margin as capacity built during FY2023 to FY2025 began to fill, and capital spending has dropped below depreciation. Housing & Living Materials, once dismissed as a low-return legacy, now earns a double-digit margin. The balance sheet leaves room to fund the coming equipment phase, acquisitions and a payout ratio near 50% simultaneously.
The central question is durability. A FOUP purchase depends on fab construction, which is lumpy, while FOSB demand follows wafer shipments. Second-half guidance is cautious, but it may reflect real input cost pressure as well as management's habit of conservatism. Competitive change in FOUP is the least visible risk, because the company discloses neither container sales nor share.
On balance, the franchise is stronger than at any point in the past five years, and its profit target for FY2030 looks attainable well ahead of schedule. The most important test is whether management converts that position into capital efficiency, using surplus cash to move ROE towards 10%, rather than simply accumulating it. Progress on pricing, back-end containers and succession will show whether this upcycle produces a structurally better company or merely another strong peak.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Tenure | Prior roles | Age | Shares (000, 19 Jun 2026) |
|---|---|---|---|---|---|
Yoshiaki Ono | Chairman, Chairman Executive Officer | President 2013; Chairman 2023 | Representative Senior Managing Director, Shin-Etsu Chemical; head of silicone business | 82 | 79 |
Toshiaki Deto | Representative Director, President | President since Jun 2023 | Joined 1980; head of Functional Products; Senior Managing Director | 73 | 107 |
Osamu Kowada | Director, Managing Executive Officer; Corporate Planning and Accounting head | Director since Jun 2026 | Joined 1986; led subsidiaries in Singapore, Malaysia, Thailand, India | 64 | 16 |
Osamu Miyashita | Independent Outside Director | Since Jun 2019 | Mitsubishi Corporation; President, MC Healthcare | 71 | 0 |
Tamami Murata | Independent Outside Director | Since Jun 2025 | Lawyer; Vice President, Daini Tokyo Bar; former outside director, SOMPO Holdings | 66 | 0 |
Hideaki Hirasawa | Full-time Audit & Supervisory Board Member | Since Jun 2021 | Accounting head; President, Shin-Etsu Polymer America | 71 | 24 |
Yoshiaki Torimaru | Full-time Audit & Supervisory Board Member | Since Jun 2023 | President's Office head; overseas sales | 65 | 5 |
Tatsuo Yoshihara | Independent Outside A&SB Member | Since Jun 2021 | Managing Executive Officer, Sumitomo Bakelite | 71 | 0 |
Tomoko Moriya | Independent Outside A&SB Member | Since Jun 2023 | US CPA; Director and CFO, JMC; Representative, Integrity Associates | 56 | 0 |
Directors' Remuneration
| FY2026 compensation (JPY Mn) | Base | Bonus | Stock options | Total | Persons |
|---|---|---|---|---|---|
Directors excluding outside | 116 | 59 | 38 | 214 | 3 |
A&SB members excluding outside | 31 | 0 | 0 | 31 | 2 |
Outside officers | 36 | 0 | 0 | 36 | 5 |
Major Shareholders
| Holder | Shares (000) | Stake excluding treasury (%) |
|---|---|---|
Shin-Etsu Chemical | 42,986 | 53.48 |
The Master Trust Bank of Japan (Trust Account) | 5,910 | 7.35 |
Custody Bank of Japan (Trust Account) | 2,092 | 2.60 |
CEPLUX - The Independent UCITS Platform 2 | 1,945 | 2.42 |
Hikari Tsushin KK Investment LPS | 986 | 1.22 |
Nippon Life Insurance | 768 | 0.95 |
State Street Bank and Trust 505103 | 693 | 0.86 |
The Bank of New York Mellon 140044 | 678 | 0.84 |
BNYM as Agent / Clients Non-Treaty JASDEC | 605 | 0.75 |
JPMorgan Chase Bank 385781 | 487 | 0.60 |
Top ten total | 57,153 | 71.11 |
Competitive Landscape
Competitors by Segment
| Segment | Direct competitors |
|---|---|
Wafer containers | Entegris, Miraial, Gudeng Precision, Chuang King Enterprise, 3S Korea, Dainichi Shoji, E-SUN, ePAK, Achilles |
Carrier tape | Advantek, Denka, Sumitomo Bakelite |
OA rollers | Sumitomo Riko |
Automotive input devices | Alps Alpine, Tokai Rika |
Food wrap | Riken Technos, Mitsubishi Chemical, Kureha, Asahi Kasei |
Compounds and materials | Riken Technos, Heraeus |
Company | Year end |
Shin-Etsu Polymer | Mar 2026 |
Entegris | Dec 2025 |
Gudeng Precision | Dec 2025 |
Miraial | Jan 2026 |
Achilles | Mar 2026 |
